The United States: Moody’s forecasts US defense spending to be significantly higher than the CBO’s. This is bad news for the federal deficit over the next few years.
Equity Markets: US stock-market implied volatility remains elevated relative to other markets. This scatter-plot shows the Nations VolDex index (VIX-equivalent for SPY) vs. CVIX (the VIX-equivalent for currencies) over the last couple of years.
Rates: Last week investors exited US stock funds. But they also continued to get out of long-term Treasuries. Given Tuesday’s bond rally, will this week be different?
Energy Markets: This chart shows the composition of US LNG exports.
The Eurozone: Here, we have the EU’s largest trading partners.
Global Developments: Here is a forecast for the key central bank rates over the next couple of years.
Food for Thought:The US spends way more than peers on defense (with borrowed money).
Edited by Joseph N Cohen
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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.
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